| Huntington, KeyBank add more SBA loans to portfolio
The credit crunch has dominated the financial world in the past six months, but you couldn't tell loans were tough to come by if you asked Huntington National Bank. A boatload of small-business owners turned to Huntington in the past year when it came time to get a loan. Huntington's U.S. Small Business Administration loans in the fiscal year ended Sept. 30 surged 142 percent, to 109 loans in the five-county local area of Ohio, according to SBA figures. That was the biggest rise in a fairly weak year for SBA loans in Southwest Ohio. Overall SBA lending activity was down locally in the past year. The number of loans fell 5 percent to 625, but the dollar amount actually rose 6 percent. Banks are making fewer, but bigger, loans locally. .
Westpac Banking Begins Funding New RAMS Loans (WBC.AX, 00783826, 20071116)
Westpac Banking announced that it had completed funding arrangements for RAMS home loans, up to $500m. The funding agreement, which came into effect 16 November 2007, will be provided by a warehouse facility and will fund all new loans settled by RAMS until the completion of Westpac's acquisition of RAMS distribution business. However, funding will cease if shareholder approval is not obtained. RAMS' shareholders will vote on Westpac's proposal at their AGM on Monday 26 November, 2007. More information about WBC.AX .
Intercon Bank officially makes the switch to Amegy Bank name
Amegy Bank, N.A. has completed the conversion of Intercontinental National Bank (Intercon) in San Antonio to the Amegy Bank brand. As a combined company, Amegy Bank today has 85 banking center locations, $10.7 billion in assets and $7.4 billion in loans. "Since entering the market in January, Amegy Bank now has four banking centers and more than 45 employees in San Antonio," says David McGee, president and CEO of Amegy Bank San Antonio. Intercon had three locations in San Antonio. These branches have now been re-branded Amegy and can offer any of the Houston-based company's products and services. Amegy Bank has experienced a significant level of momentum in San Antonio as more and more customers are signing up for Amegy's products and services, McGee says. Amegy's products include: Anytime Deposits, an electronic check processing tool that allows businesses to make check deposits without having to physically transport checks to the bank.
RAMS loans may fall into NAB hands
UP TO $2.7 billion worth of mortgages may fall into the hands of National Australia Bank, if troubled home lender, RAMS Home Loans, is unable to refinance two commercial paper programs before February 11. The likelihood of NAB (nab.ASX:Quote,News) picking up the RAMS loan book strengthened yesterday after the RAMS board warned shareholders in an ASX filing that the company may lose control of the business. The scenario painted by RAMS' directors is a disastrous prospect for shareholders who have already seen the value of their investment slide 90 per cent since the company listed earlier this year. "If RAMS is unable to refinance its two XCP programs by 11 February 2008, then it will lose all (or substantially all) of the economic value of those loans but will be obliged to continue to pay trail commissions on those loans," the board told shareholders.
Truly unique collapse
The RAMS is dead. Long live the RAMS. In what is unquestionably the most extraordinary corporate event I've ever seen, a company is in the process of going out of business because its assets are too good. This is the exact opposite of every collapse I've ever seen where the one universal factor from banks to non-bank industrials to mining and IT hopefuls, has always been their assets going bad or disappearing. Shareholders of RAMS Home Loans Group have no option but to vote for the effective liquidation of their company at the annual meeting in Sydney on Monday and then hope that at some indeterminate point in the future, a few cents per share will percolate down to them absent some smartie/bottom feeder being able to do the sums and buy out shareholders sooner. They shouldn't hold their breath.
Maybank banks on new online service
KUALA LUMPUR: Malayan Banking Bhd (Maybank) expects its trade finance sector to contribute 20% to the group's revenue in financial year ending June 30, 2009 (FY09), following the introduction of its new online trade finance service. The e-trade finance service, expected to be rolled out in April next year, is anticipated to contribute 20% to the group's revenue in its first year of implementation, and 25% for subsequent years, said senior executive vice-president, head of business banking Rozidin Masari after the signing ceremony for online trade finance services between Maybank and HCL (Malaysia) Sdn Bhd on Wednesday. Rozidin said the trade finance sector contributed 16%-17% to the group's revenue for the last financial year. At present, Maybank has more than 17,000 customers utilising its trade finance facilities, with about 3,000 business customers registered with Maybank2e.net, an integrated online enterprise cash management financial portal. "We aim to convert 10% of our Maybank2e.net customers in the first year of rollout to use this service and to grow it by 30% each year," said Rozidin. The online trade finance services via Maybank2e.net would "enable customers to utilise and monitor their trade financing activities and status online anywhere, anytime" said chief operating officer Datuk Johar Che Mat. The new e-trade service, targeted at small-medium enterprises (SMEs) is expected to further enhance Maybank's present SME market, said Rozidin. "We anticipate double-digit growth in SMEs and the commercial market for the financial year ending June 30, 2008 (FY08)," he added, in spite of only 1.1% growth in SME loans in its first quarter results ended Sept 30, 2007.
Summit targets small-business owners
A free informational session on business financing for small-businesses owners will be held in Honolulu Dec. 5. Hawaii-based mortgage banking company Meridian Financial Network is sponsoring its first Small Business Summit, which it plans to hold annually. The company, a U.S. Small Business Administration-approved lending institution, said the half-day session will help familiarize small-business owners with both in-house and government loan programs, including SBA loan programs. The SBA offers loan programs to help small businesses obtain financing when they might not be eligible for conventional bank loans because of a lack of financial history. Speakers at the session will include Andrew Poepoe, director of the SBA's Hawaii District office; Jim Tollefson, president and CEO of the Chamber of Commerce of Hawaii; and Keith Ogata, director of S.C.O.R.E.
Credit crisis hits mortgage lender Paragon
Mortgage firm Paragon has admitted it is facing funding uncertainties after costs soared during the summer credit crunch. A statement from the company, the UK's third largest buy-to-let lender, alarmed investors as shares in the company tumbled by almost half. The Solihull-based firm said: "The deep turmoil in the credit markets is affecting the normal financing activities of the business." Paragon has no depositors and raises its funding by "securitising" - bundling up and selling on - its loans. Cash for new lending is also financed by a £2.3 billion "warehousing" facility from a banking syndicate. But since the summer credit crisis - sparked by slumping confidence in bonds based on high-risk US mortgages - the securitisation market has effectively closed.
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